Benso Oil Palm Plantation Limited (BOPP), a leading player in Ghana’s oil palm industry, has released its unaudited financial statements for the year ended December 31, 2024, showcasing a resilient performance despite challenging market conditions.
The company reported a slight decline in revenue but maintained strong profitability, reflecting its ability to navigate industry headwinds effectively.
BOPP recorded a marginal decrease in revenue, which stood at GHS 346.9 million in 2024, down from GHS 351.6 million in 2023. This decline was primarily attributed to fluctuations in commodity prices and higher transaction costs. However, the company’s cost of sales remained stable at GHS 217.6 million, resulting in a gross profit of GHS 131.3 million, slightly lower than the GHS 135.7 million recorded in the previous year.
Operating profit for the year stood at GHS 100.4 million, down from GHS 109.5 million in 2023. Despite this, the company’s net profit before tax remained robust at GHS 112.1 million, compared to GHS 123 million in 2023. After accounting for taxation, BOPP reported a net profit of GHS 92.9 million, representing 91% of the previous year’s profit after tax.
Earnings and Dividends
Basic and diluted earnings per share (EPS) for 2024 stood at GHS 2.6689, down from GHS 2.9183 in 2023. The company declared dividends totaling GHS 77.8 million for the year, reflecting its commitment to delivering value to shareholders. This included an interim dividend of GHS 42.7 million and a final dividend of GHS 35.1 million.
Balance Sheet Strength
BOPP’s balance sheet remained strong, with total assets increasing to GHS 377.8 million from GHS 369.7 million in 2023. Non-current assets, including property, plant, and equipment, grew to GHS 225 million, while current assets stood at GHS 152.8 million, driven by higher inventories and trade receivables.
The company’s equity position also improved, with total equity rising to GHS 309 million from GHS 293.9 million in 2023. This growth was supported by retained earnings, which increased to GHS 307 million from GHS 291.9 million.
Cash Flow and Investments
BOPP generated GHS 100.3 million in net cash from operating activities, down from GHS 185.5 million in 2023. The company invested GHS 62.8 million in property, plant, and equipment, as well as biological assets, reflecting its commitment to maintaining and expanding its production capacity.
Cash flows from financing activities saw a net outflow of GHS 66.9 million, primarily due to dividend payments to shareholders. Despite this, the company’s cash and cash equivalents stood at GHS 56 million at the end of 2024, down from GHS 85.5 million in 2023.
Strategic Outlook
Looking ahead, BOPP remains committed to sustainable growth and profitability. The company plans to continue investing in cost management and yield improvement initiatives to enhance operational efficiency and profitability. Management is optimistic about the future and is focused on positioning the company for enduring success in 2025 and beyond.
In a statement, the company’s directors expressed confidence in BOPP’s ability to navigate the evolving market landscape. “Our business has displayed remarkable resilience in the face of significant industry challenges. Achieving 91% of last year’s profit after tax is a clear testament to our strength. We remain committed to a sustainable growth strategy and will continue to invest in initiatives that enhance profitability and ensure long-term success,” the statement read.
Benso Oil Palm Plantation Limited’s 2024 financial results reflect a company that has successfully navigated a challenging operating environment. With a strong balance sheet, robust profitability, and a clear strategic focus, BOPP is well-positioned to continue delivering value to its stakeholders in the years to come.
